international mortgages

greece

Essential information for buying properties in Greece

Buying property abroad is not necessarily the same as buying in the UK, there is other essential information you need to be aware of both before and during your property purchase.

It is of paramount importance to seek independent advice from an overseas solicitor.

You need to ensure that you will have full title to the property on completion and that you have the appropriate documents available for the lender. The property or land must have been registered for 20 years or more.

You should check with the estate agent and/or your lawyer that you are aware of the costs charged by legal and Government authorities for buying a Greek property. The solicitor may be incorporating costs for assigning the loan within his charges, along with the title deeds to the land registry. You should establish the actual cost of these before proceeding with a loan application. The lender will also have their own legal costs for assigning the loan, the cost of which they will normally advise you when they issue the mortgage offer. These associated fees/taxes are typically between 10% - 15% of the properties purchase price.

Before signing the sales contract, the bank will require a copy of this document to be forwarded with the relevantapplication form. However you are able to sign this contract with the clause “subject to mortgage finance” as the contract, once signed is legally binding, and you may forfeit any deposit monies paid.

Ensure you take relevant professional advice with regard to tax implications that may arise based on your personal circumstances.

Properties can be purchased either individually or in joint names.

Eligibility and criteria

Available for purchases only
Loans available in Euros only
Available on a Capital & Interest repayment basis
The maximum loan to value for a purchase is 70%, Construction loans also available
The maximum term is 25 years – available to age 70
The minimum loan amount is €250,000 with no maximum
All schemes require full documentary evidence of income – ‘self-cert’ mortgages are not available.

Affordability

To qualify for a mortgage in Greece, a calculation is used to establish whether you can afford to maintain the mortgage repayments.

Your existing liabilities, including your UK mortgage or rental payments, UK council tax, loans, credit card payments and maintenance are taken into account, together with the proposed Greek mortgage payments. All this must not typically exceed 30% of your monthly net income. For example if your net joint income is £3,000, 30% of this equates to £900. If your only liability is your current UK mortgage payment of say £500 per month, this would leave a balance of £400 for your Greek mortgage repayment.

The amount that you can borrow is also restricted by the maximum loan to value as mentioned under Eligibility and criteria.

Proof of income requirements

If you are employed:

Your last three month’s payslips
Your latest P60 and/or employers reference
Your last three month’s personal bank statements

If you are self-employed:

Your last two year’s audited accounts or Accountants reference (Euro loans only)
Your last 3 month’s personal bank statements

Other documents will be required and will be confirmed when application forms are sent to you.

If you would like to speak with a representative to discuss your requirements please call +(34) 677 874 948

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